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Buying an Apartment in Australia: Due Diligence Checklist

By the VRS Realinvest team·Published on 30 October 2026

Buying an apartment in Australia: due diligence checklist for strata, levies and supply

If you are buying an apartment in Australia, due diligence means looking beyond the kitchen, view and asking price: investigate the building’s records, physical condition, levy funding and the homes that may compete with it nearby. The latest approvals data is a useful prompt, not a shortcut to a decision. In August 2026 (ABS data released 30 September 2026), private-sector house approvals rose while approvals for private dwellings excluding houses fell sharply, but one month of approvals does not tell you whether a particular building is sound or whether future supply will be scarce in its neighbourhood.

For owner-occupiers, the checks help test whether a building suits daily life and ongoing costs. For investors, they also help assess rental competition and potential interruptions to use. The practical approach is to assess the apartment, the strata scheme and the local pipeline as separate parts of one purchase decision.

What August’s approvals swing does—and does not—tell you

The Australian Bureau of Statistics reported that seasonally adjusted private-sector house approvals rose 3.7% in August to 10,885, while private-sector dwellings excluding houses fell 21.2% to 5,674. The trend series showed a smaller monthly fall of 2.6% for non-house dwellings, to 7,105. These are approvals, not completed homes or a count of apartments available to buy today. “Dwellings excluding houses” also covers more than apartments, so it should not be read as an apartment-only measure. (ABS, Building Approvals, Australia, August 2026, released 30 September 2026 — Key statistics and Dwellings approved)

Treat the figure as a reason to ask better local questions. Look at the relevant council area and suburbs, and distinguish applications, approved projects under construction, completed buildings and homes currently listed. A project may be delayed, altered or never proceed. Equally, a temporary monthly dip does not prove that future apartment choice will be limited.

Buying an apartment Australia due diligence: start with the strata records

A strata apartment is not simply a private interior. Owners share responsibility for common property such as the roof, external walls, lifts and services, through the owners corporation. NSW Government guidance recommends getting both a strata report and a building inspection report before purchase. A strata report, prepared by a strata inspector and arranged in coordination with your conveyancer or solicitor, can reveal finances, insurance, building defects, planned works, safety requirements, legal matters and meeting notes. (NSW Government, Buying a strata property, last updated 1 April 2026)

Read the records for patterns rather than searching only for a single alarming phrase. Ask the strata inspector to cover recent AGM and committee minutes, correspondence, maintenance logs, engineering or consultant reports, insurance details, claims, disputes and notices. Do the same for several years if the records allow it: repeated discussion of water ingress, lift problems or unresolved repairs can matter even where the latest minutes appear calm.

Ask your solicitor or conveyancer to review the contract, strata plan, by-laws and relevant certificates. Check what is included in your lot, what is common property, and whether the by-laws fit your intended use—for example, pets, parking or renovations. In NSW, a Section 184 certificate includes details such as levies, unpaid levies for the lot and proposals for funding matters in the 10-year capital works plan. It complements, rather than replaces, a full records review.

The Section 184 certificate, the 10-year capital works plan, the NSW Planning Portal and Building Commission NSW mentioned in this guide are NSW rules and tools. Strata laws and document names differ in other states and territories, so check the local requirements with your conveyancer or solicitor.

Check the building itself—and follow the defect paper trail

A strata search is a review of records; it is not a physical inspection of the apartment. Commission an independent building inspection suited to the property, and ask the inspector to explain the limits of their inspection. Look for signs that merit specialist follow-up, including cracking, dampness, damaged finishes, poor drainage or recurring repairs. An inspector may not be able to assess concealed structure, building-wide systems or areas they cannot access.

Then compare inspection findings with the strata file. If a report identifies a defect, look for the original assessment, scope of proposed rectification, meeting decisions, funding arrangements, contractor engagement and evidence of completed work. Distinguish a defect that has been documented and resolved from one that is still being investigated or merely discussed. Where concerns are technical, request advice from an appropriately qualified building professional before making a decision.

In NSW, you or your conveyancer can also check the Building Commission NSW register of building work orders, which lists in-force prohibition orders, building work rectification orders and stop work orders for residential buildings. An order on the register is a reason to ask detailed questions. Because the register lists only orders currently in force, the absence of an order does not mean a building is free of defects.

Pay attention to who is responsible and how the work will be funded. A building can have an adequate-looking repair plan but insufficient cash, or a well-funded scheme may still face significant disruption during works. Ask whether defects affect the individual lot, common property or both, and whether access, noise or temporary service outages could affect occupation or rental use.

Understand levies and the true cost of ownership

Strata levies fund day-to-day administration and longer-term capital works. In NSW, schemes must have a 10-year capital works plan (NSW Government, Your strata levies, finances and insurance, last updated 22 June 2026). The capital works fund pays for major building work such as replacing roofing, lifts or fencing. The NSW Government notes that low levies could mean a steep rise in future fees, and that special levies may be needed if there isn’t enough money for large capital works or unforeseen expenses. (NSW Government, Buying a strata property, last updated 1 April 2026)

Do not judge a scheme on the levy amount alone. Compare current contributions with the building’s age, facilities, maintenance schedule, capital works plan and known defects. A pool, concierge, lifts or extensive grounds can carry ongoing costs; a modest levy is not automatically a sign of efficiency if important work has been deferred. Check the balances of the administrative and capital works funds, planned expenditure, arrears and any proposed special levies.

For your budget, calculate ownership costs using the current levy and plausible documented costs—not an assumed future resale price or a guess that levies will stay flat. Investors should also allow for periods when works or access issues affect letting, without assuming a specific vacancy outcome; our guide to rental yield, net yield and cash flow shows how strata costs feed into net returns.

Map the competing supply around the building

Once you understand the building, examine its surroundings. Search the NSW Planning Portal Application Tracker by address, project and council to see development applications and state-significant applications, including their status from lodgement to determination. The tracker allows searches by address, development type, status and council. Some councils maintain their own application trackers, so check those too when needed.

Make a simple pipeline list: proposed or lodged, approved, under construction, recently completed and established competing stock. Note the project’s scale, dwelling mix, location, likely completion timing where publicly available, and whether its residents would be looking for the same tenants or buyers. Confirm details through council records and project documents; a lodged application is not a completed building, and a planning tracker is not a guarantee that a project will proceed as described.

Supply is only one part of suitability. Compare the target apartment’s light, layout, storage, transport, services and noise exposure with nearby alternatives. For a home, consider how construction activity or new amenity may affect your routines. For an investment, compare the product with the likely competing rental stock rather than relying on a citywide approvals statistic.

A practical decision sequence

Before committing, work through these steps with your conveyancer or solicitor and a strata inspector: obtain the strata report and an independent building inspection; have your conveyancer or solicitor review the contract, strata plan, by-laws and certificates; reconcile defects with meeting records; test levy funding against planned works; and map nearby applications and completed supply. Write down unanswered questions and who can answer them—your conveyancer or solicitor for legal matters, the strata inspector for the records, and a building professional for technical issues. If the evidence is incomplete or inconsistent, pause to clarify it rather than treating a sharp national monthly movement as a reason to rush. For more checks that investors often miss, see 7 costly property buying mistakes every Australian investor should avoid.

General information only, current as at 17 October 2026. This article is not legal, tax, building or personal financial advice. Seek advice from appropriately qualified professionals about your circumstances and the specific property.

Schedule a One-on-One Session

If you are weighing an apartment as a home or investment, schedule a One-on-One Session or message us on WhatsApp to work through the research questions to answer before you commit. First home buyers are welcome to book too. VRS Realinvest is a Sydney-based buyer’s agency and property-education business, buying Australia-wide, that helps busy professionals make informed property decisions.

Frequently asked questions

Does a 21.2% fall in non-house approvals mean fewer apartments will be available? Not necessarily. The figure is a one-month national approvals measure for dwellings excluding houses (ABS, August 2026), not apartments completed or available for sale; check local pipeline and completion evidence.

What should I look for in an apartment strata report? Review scheme finances, insurance, meeting records, defects, planned works, safety matters, disputes and legal issues. Ask your conveyancer or solicitor, or the strata inspector, to clarify anything material.

Are low strata levies a good sign? Not by themselves. Compare levies with the building’s condition, capital works plan and fund balance; underfunding can lead to higher future levies or special levies.

Related reading

Sources

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